# ASC 230-946: Statement of Cash Flows — Financial Services—Investment Companies

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/230/946/)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

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## ASC 230-946: Statement of Cash Flows — Financial Services—Investment Companies

### Machine-generated study aids

```json
{
  "summary": "This subtopic applies the statement of cash flows requirements to investment companies and points to the narrow exemption that lets certain investment companies omit the statement entirely. It also identifies noncash investing and financing activities peculiar to investment companies — notably reinvested dividends and distributions — that must be disclosed.",
  "key_points": [
    "The subtopic governs statements of cash flows for investment companies and the circumstances in which such an entity is exempt from presenting one (230-946-05-1).",
    "Scope follows the investment company scope in Section 946-10-15 (230-946-15-1).",
    "The conditions for exemption from providing a statement of cash flows are set out in paragraph 230-10-15-4, not in this subtopic itself (230-946-45-1).",
    "Reinvestments of dividends and distributions are examples of noncash investing and financing activities that must be disclosed under paragraphs 230-10-50-3 through 50-4 (230-946-55-1)."
  ],
  "categories": [
    "Presentation",
    "Cash flows",
    "Industry-specific",
    "Disclosure"
  ],
  "audience_level": "intermediate",
  "student_note": "Investment companies are one of the few entities that can skip the statement of cash flows, but only if every condition in 230-10-15-4 is met — students often assume the exemption is automatic for any fund, when it is conditional and must be tested each period. Even when exempt-analysis is done, noncash items like dividend reinvestments still require disclosure.",
  "related_topics": [
    "230-10",
    "946-10",
    "946-205",
    "946-305"
  ],
  "key_concepts": [
    "investment company",
    "statement of cash flows exemption",
    "noncash investing and financing activities",
    "reinvested dividends and distributions",
    "highly liquid investments",
    "supplemental cash flow disclosure"
  ]
}
```

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## ASC 230-946-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/230/946/#05-overview-and-background)

SEC content: no

##### [230-946-05-1](https://asc.understandingaccounting.org/asc/230/946/#230-946-05-1)

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This Subtopic addresses statements of cash flows for investment companies, as well as the circumstances under which an investment company would be exempt from the presentation of statements of cash flows.

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## ASC 230-946-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/230/946/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [230-946-15-1](https://asc.understandingaccounting.org/asc/230/946/#230-946-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15.

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## ASC 230-946-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/230/946/#45-other-presentation-matters)

SEC content: no

##### [230-946-45-1](https://asc.understandingaccounting.org/asc/230/946/#230-946-45-1)

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Paragraph [230-10-15-4](https://asc.understandingaccounting.org/asc/230/10/#230-10-15-4) specifies conditions under which an investment company is exempt from the requirements to provide a statement of cash flows.

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## ASC 230-946-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/230/946/#55-implementation-guidance-and-illustrations)

SEC content: no

#### Implementation Guidance

##### [230-946-55-1](https://asc.understandingaccounting.org/asc/230/946/#230-946-55-1)

Pending content: no

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Examples of noncash investing and financing activities of investment companies that paragraphs

[230-10-50-3 through 50-4](https://asc.understandingaccounting.org/asc/230/10/#230-10-50-3)

require be disclosed include reinvestments of dividends and distributions.